Turkey Green Taxonomy Regulation Published
With the new regulation published in the Official Gazette, access to financing for sustainable investments in 16 sectors and 137 economic activities is facilitated.
Prepared by the Climate Change Directorate affiliated with the Ministry of Environment, Urbanization and Climate Change, the Turkey Green Taxonomy Regulation has been published in the Official Gazette. Covering 16 sectors and 137 economic activities, the regulation aims to encourage the flow of finance to sustainable investments and facilitate access to green finance.
Purpose and Scope of the Regulation
An important step has been taken to support economic activities aligned with sustainable development goals and to encourage the flow of finance into sustainable investments.
Prepared within the scope of the Green Deal Action Plan published in 2021, the Turkey Green Taxonomy Regulation will serve as a guide in determining which investments are environmentally sustainable.
Six Environmental Objectives Defined
Within the scope of the regulation, six environmental objectives were defined for economic activities, including the reduction of greenhouse gas emissions, adaptation to climate change, and the protection of water resources.
Additionally, the transition to a circular economy, the prevention of pollution, and the protection and restoration of biodiversity are among the objectives.
Three Basic Conditions for Compliance
For an economic activity to be considered compliant with the green taxonomy, it must make a substantial contribution to at least one of the six objectives.
At the same time, it is required that the activities do not significantly harm other objectives and fully comply with minimum social safeguards.
Agriculture and Tourism Sectors Included
While technical screening criteria consist of 16 sectors and 137 economic activities, the process began with activities included in the EU Taxonomy.
Unlike the European Union taxonomy, the agriculture and tourism sectors, which are of critical importance due to Turkey's structural characteristics, were also included in the system.
Reporting Processes and Obligations
Voluntary reporting will apply to the real sector with no legal obligation; however, reporting may be requested for financing demands.
For the financial sector, mandatory reporting will be implemented starting from January 1, 2029, and institutions will be obligated from this date onwards.